Frequently Asked Questions
Please note: while we endeavour to assist you at step of the way with your property transaction, we are not tax or financial advisors and strongly recommend you seek professional advice on all matters of your own personal and business tax and finance in connection with your property transaction. Information supplied is for educational purposes only, to provide investors with an overview of information about investing in USA property. We request you please not treat this information as advice and simply use it as a reference point from which to further conduct your own research. Thank you.
In Atlanta you can buy modern, single family houses in good, suburban neighbourhoods which typically come in between $90,000 to $150,000 (which is around 33% less than peak pricing and 25% less than rebuild cost) and offer yields of 7% to 9% net. Often Atlanta tenants have signed a future option to buy, so this location also offers a solid exit strategy.
In Buffalo you can buy fully-refurbished single and multi-family homes in select neighbourhoods. Prices here typically range from $40,000 to $60,000 and they offer high yields of 14% to 18% net. Buffalo is ideal if you want a low capital requirement and a high income.
In Florida we specialise in refurbished condo apartments and family houses, primarily in the Orlando area. These typically come in at between $75,000 to $110,000 for condos and $90,000 to $120,000 for houses (around 50% discount from peak values) and offer yields of 9% to 11% net. Florida is ideal if you want a solid investment to hold, with a future option of selling at the top of the market.
In Cleveland, Ohio, we specialise in refurbished, multi-family houses and single-family homes that are available in the area for between $40,000 to $60,000, with a 10%+ yield, making this a market primed for anyone interested in a “Cash Flow” investment.
Our properties also come with home and maintenance warranties and are tenanted with carefully-screened and placed tenants who have signed leases and paid security deposits. You will receive all information pertaining to the warranties and tenancies, plus the security deposit/s will be transferred to your account/s upon completion.
The type of bank account you open will depend on a number of factors, including your existing bank account/s, your country of residence, your credit history and whether you wish to visit the US to open an account in person, as some banks require your presence as well as your ID. We can help you with this.
You can research more about tax via http://www.irs.gov/
You can sell to your tenant. Some will be eligible for standard mortgages, but others who aren’t may still be able to get a government-subsidised FHA insured mortgage (similar to Help to Buy in the UK). You can also sell to your tenant on a lease option. This is an agreement whereby the tenant is given the option to buy the house for an agreed price after a specified period of time. This is popular in Atlanta with many tenants having signed a lease option agreement.
You can sell the property as a performing investment to another investor, ideally one with liquid assets who would be interested in a cash deal. This means you would be able to avoid commission fees and chains and simply sell the whole investment as opposed to just the property itself.
You may also be able to refinance by taking out a loan (e.g. a small mortgage) on your property. This, however, will depend on your individual circumstances and the rules and regulations of the banks within that particular State.